A small family patrimonialist hotel chain, whose son had recently joined the company, wanted to acquire new hotels, but only under lease or management contracts. The mandate given to BurgMaster Hospitality Consultants was getting a new hotel, available for lease or management, in the city of Barcelona. The hotel features desired were 3 or 4 stars, about 100 rooms and well located, but not necessarily in prime area.
The choice of BurgMaster as a consultant was appropriate. BurgMaster knows well dozens of operators and is aware of their plans, goals and needs. As a result, he made a short list of operators likely in succession crisis that could give up the management of one of its hotels in exchange for rent.
Hotels of these features were not many. The owners of each of them were contacted and talks began. The real case was that the owners interested in leasing their hotels requested rents somehow unaffordable. The situation, therefore, began to complicate.
Fortunately one of the owners, client of BurgMaster, was looking for cease in the direct hotel management. To do this, he had thought in transforming his properties in condo hotels. The plan failed but instead he accepted the proposal of leasing one of the hotels to the hotel chain that was expanding, successfully negotiating clauses about the maintenance and treatment of certain previously contracted debts. The solution consisted of a rent reduction agreement for a certain period. This led to the signing of the contract.
